I don't understand credit cards, but i might be getting a protected one soon. What is the APR, and is it that relevant?
2006-09-20 12:03:28 · 19 answers · asked by Anonymous in Business & Finance ➔ Credit
ouch. If you carry any kind of balance, the interest will eat you up. For a FIRST card I would really look at perhaps who you bank with. If you have a checking account with them you already have a little history. Maybe they can make you a better deal?
2006-09-20 12:06:23 · answer #1 · answered by Nurcee 4 · 0⤊ 0⤋
That is a very high APR. However, it can help you build up your credit. So if do you get this card, the best thing for you to do would be to use it for purchases that you can afford to pay in full every time you get a bill. That way you will not be charged interest, but you must make sure that this card offers you a grace period which means that you are not charged interest from the moment of purchase. Thus, you can build up your credit without costing yourself too much money. Also be sure you pay before the due date so you don't get charged a late fee. Once you have established good credit, you can get another card with a better interest rate.
2006-09-20 12:25:40 · answer #2 · answered by Curious 1 · 1⤊ 0⤋
That is extremely high! You may not be able to get a very low APR because of your age or lack of credit so you need to make sure you pay the full amount off each time you use it or you will be paying out the A**! Word of advice....don't look at a credit card as having "extra money" as I did, look at it as a way to build credit and for "emergencies" only! TRUST ME....I'm still paying for things I bought 4 years ago!
2006-09-20 12:08:01 · answer #3 · answered by CherBear 3 · 0⤊ 0⤋
That's very high! The APR is important because if you don't pay your bill in full each month, your also have to pay interest each month. The interest is calculated using the APR. If your credit is good, you should be able to get a lower interest rate - probably around 10-14%.
2006-09-20 12:16:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
To build good credit you can make sure you pay what ever bills you have ALWAYS ON TIME or before hand - this is very important.
Also, if you have to make a major purchase you can do 6 months same as cash -and pay it off in 6 mons -that will show you have good credit too.
If you must get a credit card - (they are pure evil though) try to pay it off every month and get one with the lowest purchasing limit you can get so you don't abuse it. Even the best intentions can get you in credit card trouble -they are very easy to use and very hard to pay off. So, if you can forgo the credit card - you should... If you need a credit card for convenience - get a debit card to your bank account.
2006-09-20 12:11:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
21.08 is ATTROCIOUS. normal cards should be around 8-10 percent APR. not even Sears is that bad. APR is annual percentage rate, basically how much interest they will charge you for the balance on the card. higher the rate, higher you will be paying for the item you charge. so if you bought a tv for $200, if you paid it off in twelve months you would've paid $240 for the tv. you may think. not too bad. however whatever you put on that card the interest will increase and the higher the balance you have the more you will pay in finance charges. so if your card is nearing max limit, your interest charges on it wil be outrageous.
2006-09-20 12:07:30 · answer #6 · answered by Anonymous · 0⤊ 1⤋
21% is a very high APR. If you wish to build credit, use the card, but pay off the balance every month. This way, you will build your credit history in a positive manner, but will not incure finanace charges.
2006-09-20 12:05:27 · answer #7 · answered by Twinkle 2 · 3⤊ 0⤋
21 per cent APR is horrible!!! (Annual Percentage Rate) But just because you have the card doesn't mean you have to pay that interest. Just pay off the balance every month. It's great because you turn the tables on them and use their money at no interest.
2006-09-20 12:25:55 · answer #8 · answered by DelK 7 · 0⤊ 0⤋
21.08% APR (interest rate) is terrible. If you pay your balance IN FULL EVERY month, you will never pay interest. Once you establish a credit history, you will be able to do much better.
2006-09-20 13:39:57 · answer #9 · answered by STEVEN F 7 · 0⤊ 0⤋
APR stands for Annual Percentage Rate. That's the amount of interest you will pay.
21% is VERY high.
Of course the rate is irrelevant if you do not carry a balance.
2006-09-20 12:08:36 · answer #10 · answered by bookbyte 3 · 1⤊ 0⤋